The Evolving Global Debt Landscape

Abstract

In the wake of the 2008 Global Financial Crisis, a new world order of banking emerged. Many financial institutions were consolidated, others no longer exist, and the world’s regulatory bodies came together to create new rules to prevent such instability from occurring again. The most prominent of these has been Basel III and the imminent Basel IV. What this has meant for the global banking industry is an increase in the amount of capital held in reserves, which has led to a tightening of capital that can be used to back new lending.